1. Reference articles EPS 95 Scheme – Eligibility For Higher Pension – Part-I & Part II, EPS 95 – Higher Pension Vs EPF – Comparative Analysis dated 05.01.2023 & 04.02.2023 & 07.02.2023 respectively.
In a significant ruling dated 04.11.2022, the Supreme Court provided another opportunity to sections of subscribers and pensioners to opt for higher pension under the Employees’ Pension Scheme (EPS), 1995. The option is to be exercised within 4 months from the date of judgment i.e. 03 March 2023.
The four-month time fixed by the Supreme Court on 4th Nov 2022 is set to lapse soon and there are no guidelines issued by the EPFO to date. The delay in issuing guidelines by the EPFO triggered anxieties among pensioners and those nearing retirement.
In this article, an attempt has been made to address Frequently Asked Questions by the members about higher pension eligibility and submission of the Joint Option Form.
2. What if EPFO does not come up with any guidelines till 03.3.2023? In case, the EPFO remains silent and does not come up with guidelines by 03 March 2023, it is advisable to go ahead and submit a joint option form in a simple format.
EPFO may decline to accept the option form now. This is going to be another set of litigation in the future. Those members who submitted the forms now and declined by the EPFO will be eligible to re-submit the Join Option Form in the future (EPFO vide circular dated 29.12.2022 allowed such members who had submitted the form earlier and the same was rejected by the authorities)
Non-filing of the application within the time limit provided in the Supreme Court Judgment may adversely affect the eligibility in the future.
3. Format for Joint Option Form: The request for a higher pension should be made in Joint Option Form duly signed by both the employee and the employer The EPFO has not issued any standard Format. The organizations are providing Joint Option Form in its format.
3.1 The details required to be filled up in Joint Option Form are as follows
Particulars of Employees/ Ex-Employees
| Sl | Particulars | Remarks |
| (a) | Name | |
| (b) | Staff No. | |
| (c ) | EPS Account No. | |
| (d) | UAN No. | Universal Account Number( UAN) is a 12-digit identification number, assigned by EPFO. |
| (e) | Aadhar No. | |
| (f) | Date of Birth | |
| (g) | Date of joining EPS 95 scheme | |
| (h) | Date of retirement or date of leaving service, whichever is earlier | The retirement date for EPS 95 is the date of attaining 58 years |
| (i ) | Correspondence Address with e-mail and mobile phone number | |
| (j) | PPO Number, if any | Applicable for retired employees, drawing pension on ceiling limit |
| (k) | Bank Details | Bank details where the pension is being credited to retired employees |
3.2 The Joint Option will be signed by the member and is to be attested by the employer. The employer shall certify that the particular furnished by the employee is correct and that both the employee and employer have contributed on actual salary towards PF. The employer has no objection to diverting the differential amount @8.33% of the employer’s share of the PF Account to the Pension Fund maintained by EPFO.
3.3 In the case of exempted establishments, PF trust shall submit the undertaking. The undertaking shall be to the effect that the due contribution along with interest up to the date of payment, will be deposited within the specified period.
4. Calculation of Differential Amount to be diverted/ deposited: The differential amount to be deposited /diverted to the pension fund varies in each case depending upon the period of service, Salary, Date of retirement, etc. Let us try to understand the basics of calculations with the help of a tabular Illustration:
| MMYY | Basic+DA (Rs.) | 8.33% of the Salary
(Rs.) |
Actual Amount remitted towards EPS | Differential Amount | Monthly Interest( received on the differential amount in EPF Account | Monthly Total (to be remitted | |||
| (a) | (b) | (c )= [(b)*8.33%] | (d) | (e) = (c )-(d) | (f) | (g)= ((e)+(f) | |||
| Nov-95 | 15000 | 1250 | 417 | 833 | (833*9%/12) *4 =25
Note (b) |
858 | |||
| Calculation of Annual Interest: | |||||||||
| O/B
|
Total amount to be remitted in the year (g) | Prevailing Rate of PF Interest in the particular year | Annual Interest | Amount to be remitted to EPS | Note: (a)Rs 935/- will be the opening balance of next year and the calculation will continue till the month of the retirement
(b) Monthly Interest on PF in Dec 95 will be a (differential amount *rate of Interest/ 12.)*4. (number of remaining months in the year)
|
||||
| (h)
(the first year O/B will be NIL)
|
(i ) | (j) | (k) = [(i)*(j)] | (l) = (i )+(k) | |||||
| 858 | 9% | 77 | 935 [Note(a)] | ||||||
5. Calculation of Pension Amount: – The formula to calculate the EPS pension is as follows:
5.1 Monthly pension amount= (Pensionable salary X pensionable service)/70.”
5.2 Pensionable service: This refers to the number of years for which contributions were made to the EPS account. The service w.e.f. Nov 1995 will be considered for this purpose. The service period before Nov 1995 is not relevant for the calculation of pension and differential amount.
5.3 In the case of the member who superannuates on attaining the age of 58 years, and who has rendered 20 years’ pensionable service or more, the pensionable service shall be increased by adding a weightage of 2 years.
5.4 Pensionable Salary: The pensionable salary has been defined as the average of the last 60 months’ salary.
6. How to apply for a higher Pension: Though EPFO has not issued any guidelines for the eligible pensioners, the circular dated 29.12.2022 issued by EPFO for the specific category of eligible pensioners lays down the following process to apply for a higher pension:-
(a) The request will be made in such form and manner as may be specified by the commissioner
(b) The application form for validation will contain the disclaimer as ordered in the aforesaid government notification
(c ) In case of share requiring adjustment from a provident fund to a pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.
(d) In case of transfer of funds from exempted provident fund trust to the pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest up to the date of payment, will be deposited within the specified period.
6.1 Documents required to apply for higher pension A pensioner is required to submit the (a) Joint Option Form duly verified by the employer and (b) Proof of remittance in provident fund account on actual wages [higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500]
6.2 Once the eligible pensioner submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as follows:
(i) Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
(ii) The application will land into the employer’s login whose verification with e-sign will be essential for further processing.
(iii) The RPFC will cause each application to be converted into an e-file, as far as, possible.
(iv) The Officer in charge shall examine each. each case of pension on a higher salary and dispose of it by passing a speaking order that shall be intimated to the applicant through e-mail/post. Efforts will be made to intimate them through telephone/SMS.
(v) If an applicant has any grievance, then a complaint can be raised on EPFiGMS after submission of his request form and payment of due contribution if any.
7. Other relevant points (Frequently Asked Questions)
7.1 In case of the death of the member while in service, the spouse becomes eligible for a 100% pension benefit.
7.2 In case of the death of the member after the commencement of the monthly pension, the spouse becomes eligible for a 50% pension benefit.
7.3 In the case of children, a pension amount equal to 25 percent widow/widower pension is given to each child subject to a maximum of 2 children at a time. Children’s pension is payable to two children at a time, till 25 years of age.
7.4 If both the husband and wife are EPS members and have contributed independently to the said scheme, the spouse will be eligible for pensions separately on the death of a member. The pension under the EPS 95 is a direct consequence of the contributions made by the member of EPS 95; hence, the pension to a spouse will not be stopped even if he or she is also a member of EPS and getting the pension from under the scheme.
8. The decision to opt for a higher pension depends on the individual’s specific situation and factors like the ability to invest the corpus in alternate funds, cash flow requirements, life expectancy, etc.
8.1 The author believes that higher pension options cannot be viewed solely from the investment angle. The social security offered by the EPS higher pension scheme is equally important. The purpose of the pension scheme is to give tension-free fixed income at the vulnerable old age of a member
9. The delay in the implementation of higher pension may be due to various reasons. The field offices are finding it difficult to answer queries from members and pensioners. The EPFO top brass feels that higher pension may deplete the resource base in no time. Understandably, EPFO is facing genuine difficulties in implementing the Court’s directions. The government and the EPFO must at least explain to the stakeholders the genuine difficulties in delaying the implementation of the Court’s directions.
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Disclaimer: The article is for educational purposes only.
The author may be approached at [email protected]
Author Bio
I have retired from a pvt. company in July 2018 after attaining the age of 60 years. Any exercise to be done for getting revised eps95 pension. Please clarify. Thank you.
Yes, rigorous exercise is required to be done for a higher pension.
For further details , refer to my article on the subject: https://taxguru.in/income-tax/eps-95-procedure-apply-online-higher-pension.html
Hello Maam, My father worked in a State Cooperative Bank and was expired on 2010 before reaching the retirement age. My Mother gets pension amount of Rs 2051/-.Whether she is eligible for higher pension scheme or not?
To the best of my limited understanding – she is eligible if the due date of retirement was after Sep 2014.
However, EPFO has not yet issued any guidelines in this regard.
Hello Ma’am,
My husband was 36 and died on 2020 . I am getting family pension. and want to apply for higher pension . But for online submission on EPFO portal . they asked the details of member like valid aadhar card and linked mobile number etc. so where i can apply for that. Please guide
EPFO has not issued any guidelines so far for applying in special cases such as death of the member/ employer , company is closed etc.
Hope to get EPFO’S clarifications and guidelines before the expiry of last date.
Very good information
Thank you Sir for your humble comment
Good information .
Thank you Sir
I was working in Pharmaceutical Company and retired in 2011. I am getting pension of Rs 1320/- per month. Am I eligible for higher pension as per Supreme courts decision
No
Hi, My father was a government employee when he died on Feb 2013 his retirement was due in July 2019. Since then my mother has received a monthly pension of Rs 2153. Is she applicable for this higher pension scheme which was notified in Feb 2023. Kindly guide
Yes, she is eligible
my father was death on dated may 2002 year while on service. After that my mother get salary 2051rs per month. Is my mother is elligible for higher pension?
If date of retirement before Sep 2014- NO
Maam, I have joined a private company on 2002 with a basic salary 8000, on Aug 2014 my basic was 17000, I will be retair on 2025 with last 5 years avg salay 32000, I am a member since 2002, kindly give me an idea how much will be my pension
Regards
Pension will be roughly Rs 10514 : ( 32000*23(21+2)/70)
I have retired on Apr 2015 and all my dues EPF and EPS are settled. I am supposed to repay differential amount of employer contribution to EPS along with interest.
Any update on quantum and type of interest to be paid.
Do we have to submit the form even to get an assessment of amount to be paid.?
The quantum depends on your salary, increments & promotions from 1995 to 2013.
Interest will be at the rate prevailing that period.
Yes , Form is to be submitted before getting an assessment of amount to be paid
Hi, I am 36 and getting family pension. My husband died in december 2020. am i eligible to opt for higher family pension?
If he retired after Sep 2014 , you are eligible
Hello Ma’am,
My husband was in job prior to Sep 2014. and his pf contribution was on his basic salary not on 15000 wages limit. Being a spouse i am getting family pension. Am I eligible to apply for higher pension ?
If he retired after Sep 2014 , you are eligible for higher pension.
I have started working in the year 2018. Am I eligible to opt for eps 95 higher pension scheme?
No
I have retired in December, 2020 and the company settled all my PF immediately, being a trust. Now, while trying to opt for higher pension, I have to attach undertaking for depositing the contributions along with interest. Is there any specific format for this
You have to pay the amount thru the employer and the undertaking is also be submitted jointly.
The employer will provide the format.
I have retired from my service on 31.12.2010 from a Private Company .My PF Pension started from 1.march.2011, at the age of 58. I am getting a pension of ₹2083. What will be my chance to get higher pension please inform.
Not eligible as retired before 2014
माझे बाबा 16 ऑगस्ट 2014 साली रिटायर्ड झाले त्यांच्या 58 व्या वर्षी, आणि तेव्हा पासून 2100 इतकी पेंशन त्यांना मिळत होती, त्यांच्या निधना नंतर माझ्या आईला 50% पेंशन (1100) मिळते…. तर आता ती या पेंशन वाढीसाठी ग्राह्य आहे का? असेल तर कोणता पर्याय निवडावा.
Not eligible as retired before Sep 2014
Hi mam, Iam working in PSU .From 2004 to2009 in one division(Orissa), 2009 to present in Hyderabad division.. My pf amount transferred from previous account to present account , but EPS not transferred. If i opt for higher pension how to update my previous service details and how to pay the difference amount of earlier account. I think for transferring previous account to present account, it may take years, but now how I should proceed.
The EPS Account won’t get transfer with change of division. Your PF is already transferred to new division. You need to provide the details to the latest employer and he in turn up will update the details and pay the differential amount (the differential amount of pension will flow from the employer’s contribution only).
Hi Madam
I am 36 now, assuming drawing 1.5L per month.. assume at 45 I am earning 2L per month, due to inflation and presure, opting for lower package assumed 1L per month from age 45 to 58. Here my pension will be calculated on my last 60month salary, without giving weightage to my higher package and higher contribution in past. Is that logically correct, Is there any FAQ on this answered from authority and your views
There is no FAQ on such issues by the Government. There is no logic but the Basic formula is provided in the Act and Government keeps changing the methodology ( Pensionable salary calculation) time to time .
Ma’am, In our company, retirement age is 58 years. I have opted for higher pension scheme. I am planning to take a VRS at July 23 end, when my service will be 20 years and one month and my age will be 55 years and 6.5 months. Will I be eligible for pension immediately on taking VRS?Will my pensionable service be considered 22 years? If I get a pension at reduced rate, will it be at 92% or 88%?
You will be eligible for pension at the age of 58 years
Pensionable service will be considered 22 years
The pension at reduced rate will be 4% every year. ( It should be 92% )
I retired from ONGC, an exempted institution from EPS perspective. I am drawing EPS 95 pension @ Rs. 3392.00.My pensionable salary as per PPO is Rs. 13583.00. My pensionable service is 23 years 0 months 6 days. I joined EPS from 16.11.1995 and exited on 21.11.2018 at the age of 58 yrs. Plz inform
1. As whether the pension is being paid to me at the correct rate/calculations presently.
2. Whether I am eligible for pension at enhanced wages without ceiling caps of Rs. 3500, 6500 and 15000.
Regards
you are eligible to opt for higher pension without capping. Present pension is calculated on ceiling limit of salary .
will pension be calculated on Pro Data basis? or 60 month avg salary * years/70??
as it is not clear and in amendments of 1st sept 2014..pro data mentioned
Pension will be on last drawn average salary for last 60 months.
Amendment of 01.09.2014 mentioned pro-rata as the salary was capped that time as Rs 5000/- or 6500/- or Rs 15000/-.
For higher pension option, Pension will be on actual salary and there will not be any capped limit . So pro rata is not required.
If I opt for higher pension as per 1.9.2014 rule, will my EPF corpus gets reduced from 1.9.2015 or from my Date of joining to company in 2010. Also, will it be calculated based on 2010 salary or salary as on sept 2014?
Option for higher pension can be exercised either from 16.11.1995 or the date of joining whichever is later. You cannot join the scheme w.e.f. any other date in between.
Will pension be calculated on will pro data if I higher for Enhance Pension ??? as I joined EPS in 1995
Will pension be calculated on will pro data if I higher for Enhance Pension ???
No , The higher pension will be on 8.33% of actual salary without any capping.
So it will be not on pro rata basis.
if pension calculation will be on pro data if I higher for Enhance Pension Scheme
I have joined in 2008. If a resign in 2030 when my age is 47 when and how much pension i will get
Your pension will start when you attain the age of 58 years
It will be calculated on average of last drawn 60 months salary
Respected Mam
one of my employees who was member of EPS expired at the age of 42. His membership began since Jan 2007 and he died on May 2022. Accordingly he is eligible for pension too.
please let me know, what would be the pension to his widow.
1. 50% or Full pension
2. If his basic + DA is 85000 on the day of his death, how pensionable Salary is calculated. whether it is average of 5 years or as on date of death notionally considering as date of retirement
kindly advise
regards
Santosh Kumar S
Deputy General Manager (PP) Admin
BRBNMPL
(A wholly owned subsidiary of RBI)
In case of death of member in service , 100% pension will start immediately.
To the best of my limited knowledge , the pension will be calculated on average 60 months of last drawn salary
Mam,
My service tenure is 36 years, i joined at 2009 & retiring at 2045 after completing 58years age, whether 8.33% of employer contribution will be contributed to EPS for whole 36 years of my service when maximum pensionable service is 35 years for calculation of pension. In this case I will be contributing 1 year extra also I will not get benefit of 2 extra years (above 20years service) pensionable service.
Is it correct? Please guide.
There is no clarity on this issue in the EPS 95 Act itself
If I will come to know the exact provision from any reliable source , will certainly share with you .
I would like the process to opt for higher EPS pension who are yet in job.
In addition, how last 5 yr average salary will be counted if someone is not working from 55-58 yrs.
Joint option form is to be submitted to EPFO duly verified by the employer.
Average 60 months last drawn salary will be taken for pension calculation
I took VRS from a public sector in may 2002, at the age of 52 . I have been getting Rs1130 as monthly pension till date. Am i eligible to get higher pension ??
Yes , you are eligible for higher pension.
Hello
My father took voluntary retirement in 2020 aged 52. He passed away on 2021.
My mother can opt for higher pension as spouse.
I have 3 questions –
1. Will she be eligible for only 50 percent of monthly pension amount and not the full amount?
2. Does she need to wait till 2026 (when my father would have attained pensionable age of 58 years) or can she opt for early pension?
3. If opted for early pension, will there be a deduction in pension moment (i.e. 4 percent yearly deduction) ?
Thanks!
As your father was a pensioner at the time of death , your mother is eligible for 50% pension.
Pension starts immediately in case of death of a member. No need to wait till age of 58
since the eligibility itself start immediately after death of a member- no question of deduction due to early pension.
Madam
My wife Particulars
Date of Birth is 21.07.1966
Joined in CPSU on 03.02.1992
Attaining 58 years on 31.07.2024
Retirement at 60 years is 31.07.2026
Please advise on Pensionable service
15.11.1995 to 21.07.2024 – 29 Years
More than 20 years’ pensionable service – 2 Years
Defer the pension up to 60 years with contribution – 2 years
Pensionable service – 33 years
Pensionable salary last 60 months end up to 21.07.2026 or 21.07.2024
Can she also get 8% benefit on Differing the pension from 58 to 60 years
Requesting your advice
Regards
Sivarama Prasad
Pension will be calculated in 2024 considering pensionale service of 33 ( 31+2) years..
4% benefit every year will be given on pension calculated at the age of 58 years
Presently i completed my Service of 12 years in an Organization (PSU) my retirement in year 2045
it is beneficial for me to opt for EPS scheme now?
In my view , pension is a social security and shall not be viewed only as return of investment.
It is beneficial for everyone
Sir, my wife was retired on31/3/21 from a school after attaining age of 58 years and drawing pension of Rs 2576/- from EPFO. She joined service in 2001. Is she eligible for higher pension and can submit joint option form with his employer
Members joined after Sep 2014 are not eligible for EPS 95
Madam, i joined pvt school in jan 2001 and since than my employer was deducting pf for EPS. Now i was retired on 31/3/21 after completing 58 years and getting pension of Rs 2576/-. Am i eligible for higher prnsion snd should i submit joint option form
If you join in 2021, Employer must be deducting PF .100% employer’s share will be in EPF only as Post 2014 joining ,members are not eligible to join EPS scheme
i am retired on 04.09.2007. can i claim higher pension as per decision of supreme court.
No , employees retired before 2014 are not eligible for higher pension.
Mam,
My service tenure is 36 years at 2045 after completing 58years age, whether 8.33% of employer contribution will be contributed to EPS for 36 years when maximum pensionable service is 35 years for calculation of pension. In this case I will be contributing 1 year extra without benefit of 2extra years addition to pensionable service.
1. I am eligible for higher pension scheme.
2. Retirement age is 60 and present age is 53 years.
3. Will this scheme is really good with n number of uncertanity? My present basic is 165000/- per month and contribution towards EPFO is 19800self+19800 contributory-1250/- pension scheme.
Kindly suggest. Thank You
In my view , it is beneficial for everyone . Social security with EPS scheme is also an important aspect to look into .
Where does the rule regarding above point no. 7.4 is mentioned in EPS scheme or EPF act or any where else please guide.
Refer Frequently Asked Questions on EPF Portal.
https://www.epfindia.gov.in/site_en/FAQ.php
My PF Pension started from 1.November.2013 as I retired on 31.10.2013, at the age of 58 and continued my service upto 31.10 2015 at the age of 60 without any deduction towards pension scheme. In 2013 I was getting a pension of ₹1993 and 2016 there was a refixation of pension i.e ₹2179/month as weightage. I have not made any options during my service or trust was not taken any options. What will be my chance to get higher pension please.
Since you attained age of 58 before Sep 2014, not eligible for higher pension.
I am eligible for giving Joint Option for higher pension but my last employer does not exist any more as the company is closed down. Can I submit my option for higher pension directly to EPFO giving reference to my PPO number & PPO details? I am ready to deposit employers liability if required.
So far , EPFO has not provided option where employee alone can submit the higher pension option Form . Still, you can take a chance and submit directly to EPFO indicating the fact that company is closed and you are ready to deposit employer’s liability
Before that, just evaluate the financial implication vis-a-vis pension benefit to you ( for depositing employer’s liability)
Without taking the salary statement from employer, can the month to month basic be computed considering employees share as 12% of basic salary?
Yes . If you know the Employees share of PF amount , do the back calculations .( PF/12%*100).= Basic+DA.
MY MOBILE NUMBER IS NOT LINKED WITH AADHAR . IS ANY ALTENATIVE WAY TO APPLY THE JOINT FORM OR OFFLINE and other way
MY MOBILE NUMBER IS NOT LINKED WITH AADHAR . IS ANY ALTENATIVE WAY TO APPLY THE JOINT FORM OR OFFLINE
Get your mobile linked with Aadhar .
EPFO has not provided any offline option so far.
retired in 2002 Oct,getting Rs 961 at reduced rate at age of 55
from hindustan copper ltd.At Hcl,all epfo contribution were handled by TRUST.My last salary in Oct,2002 was Rs 16574.
Service counting for eps is 1979 but eps started in 1995.
please advise how to proceed when details r not available.
Amar Nath Narang
01135501582,whatsapp no 9560432807
Approach your trust . They will certainly provide the details as are being done by other trusts.
For EPS purpose, service will be considered from Nov 1995 only.
I retired in 1998 and the employer firm went into liquidation.My salary was 6000 nd pension was 435 and now 1000.
You are not eligible as retired before Sep 2014.
My UAN details indicate that I joined in Nov’2008 and was in service till Oct’2021 where EPS deductions were being done, till I resigned and start as a consultant. Am I eligible for the new pension scheme and how do I apply for the same.Thanks
Yes , You are eligible . Submit Joint Option Form , duly attested by the employer to EPFO
Ramnarayanan retiredin sep 2015 iam getting Rs 1718 pension am i eligable for higher pension
If your retirement age is 60 and you attained 58 years of age in 2013 , then you are not eligible for higher pension.
No , share of EPS amount ill be re- transferred to EPF account by the Pension Authorities .
It is clearly mentioned in Supreme Court Judgment dated 04.11.2022 that members who have joined after Sep 2014 will not be eligible for higher pension as they are not the member of EPS Scheme.
EPS Account Number
yes
What is the provision for employees who became member of EPS after 01.09.2014, as it was not allowed to became member still employer deducted and deposited share of EPS, can such employee submit joint option form